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In this video tutorial, Matthew explains how to create a licensing agreement using legal templates. He directs viewers to legaltemplates.net, where they can access various business forms. Matthew demonstrates how to find the relevant agreement by selecting "business forms" and searching for "licensing agreement." He then specifies how to create the document for Texas, focusing on details such as the owner of the intellectual property, the licensee, and the type of license (exclusive or non-exclusive). He emphasizes filling in the specifics about the intellectual property and its intended use, encouraging customization according to individual needs.